IREDA and Bank of Maharashtra sign a contract to make funding for renewable energy projects

The Bank of Maharashtra (BoM) and the Indian Renewable Energy Development Agency (IREDA), a government-owned company in India that reports to the Ministry of New and Renewable Energy, have signed a Memorandum of Understanding (MoU). "This collaboration aims to promote and facilitate loan syndication and co-lending for a wide range of Renewable Energy projects across the country".

The MoU, according to the statement, includes a number of services, including co-lending and co-origination support for all renewable energy projects, loan syndication and underwriting assistance, management of Trust & Retention Accounts for IREDA Borrowers, and a commitment to establishing stable fixed interest rates for IREDA Borrowings over a period of 3–4 Years. In accordance with the terms and conditions of the offering, Bank of Maharashtra is hereby authorised to purchase Bonds issued by IREDA.

The MoU was signed at the IREDA Business Centre in New Delhi by General Manager (Technical Services), Bharat Singh Rajput, and General Manager (Retail & MSME Credit), Bank of Maharashtra. Pradip Kumar Das, the chairman and managing director of IREDA, as well as other top representatives from both organisations, attended the signing event.

"This MoU with Bank of Maharashtra is another significant step in our ongoing efforts to promote the adoption of Renewable Energy in India," stated IREDA CMD Pradip Kumar Das. By banding together, we hope to create a strong funding environment for green energy projects, enabling more communities and businesses to access clean and sustainable energy. The agreement demonstrates how crucial it is for financial institutions and government organisations to collaborate in order to realise India's goal of achieving net zero emissions by the year 2070, as put forward by the Hon'ble Prime Minister.

IREDA has signed MoUs with public sector banks and financial institutions to work together on co-lending for large-scale projects in order to satisfy the significant finance needs of the renewable energy sector, including developing technologies like green hydrogen and offshore wind.